Frequently asked questions relating to Intelligent Finance transfer of equity

• Have recently split up with my wife of 18 years. I'm now back with my mum and dad and she wants to stay in the property and buy me out. What percentage am I entitled to. Is it 50% of the equity after redeeming the mortgage with Intelligent Finance? I assume proper valuations are necessary but I would like to be confident that I'm getting what I am entitled to
• I understand we would need at least AP1 and Transfer Deed. Is this true?
• I am disposing of my equity in flat in Warwick to my co-owners fiance, they are reapplying to Intelligent Finance. We are haggling as to who should cover the charges for the transfer of equity. Is this usually shared or is one party obliged to cover the fees for?
• My mum died half a year ago leaving a mortgage-free semi to me and my step brother 50:50. Having continues to reside at the house, there was a clause in her will specifying that the propertycould not be sold for three years after her passing so he could reside there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to buy my equity?
• I already have a mortgage with Intelligent Finance and am keeping my existing mortgaging but wish to have it in my name alone so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
• What is the process for adding or subtracting names (transfer of equity) to or from my Intelligent Finance mortgage account?
• I am filling out a Intelligent Finance transfer of equity request and have arrived at the questions concerning debts etc. I do some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit rating. Must I declare these?

Information that may be required from your conveyancer could ask in relation to your Intelligent Finance Transfer of Equity

General Advice to read in in addition to the above Intelligent Finance transfer of equity Advice :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancing solicitor will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Intelligent Finance Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content on this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.